Top
380°

Sony Vs LG: Sony Costs Could Be 'Eye-Watering'

NowGamer: Patent litigation expert Robert Buchan has told NowGamer that if the PlayStation 3 is found to infringe LG patents, the costs to Sony could be astronomical..

Read Full Story >>
ps3.nowgamer.com
The story is too old to be commented.
FrigidDARKNESS2816d ago

if Sony found guilty and have to pay 65 percent of the profits the ps3 generated it will be catastrphic to there gaming division. They could very well start selling off or close down some of there game development studios.

Christopher2816d ago

65%?

First of all, they would only be paying a fee, not profit, on the use of BD technology. And, even then, only a portion of the overall costs specific to LG's involvement, not the total cost since they don't outright own the technology or methodologies.

Second, profits are mostly from software and peripheral sales. And by a huge margin as well.

So, paying fees may be costly, it won't cripple Sony in any way equivalent to 65% of profits from PS3s.

Personally, if they don't settle on Sony's side, both Sony and LG will work something out. They both rely on each other a bit too much for their various endeavors.

gamingdroid2815d ago

There are a couple of ways to pay:

a) x amount per unit
b) a lump sum

However, this could be very costly considering Sony is the one in a huge disadvantage during negotiations. Even $1 per PS3 would net a damage of $50 million.

The damage is done and millions more are coming off the assembly line.

Christopher2815d ago (Edited 2815d ago )

As I said, costly, but not all that damaging.

$1 per unit is a hit, but nothing that would halt any of their business at the moment. More than likely they would spend a bit less on R&D, which is where they throw the majority of their profits into at the end of the day and why they show such low reports on profit each quarter.

Furthermore, that $1 would decrease in value over time as the costs for production would also decrease.

I'm not saying it wouldn't cost them, but nowhere near what FrigidDarkness claimed and nowhere near as much that it would in any way truly affect their ability to continue to produce games for us. Especially since those budgets most likely come from software profits and not from hardware profits.

Commander_TK2815d ago

Hopefully Sony will lose this 1. Not liking them in these days. Even Sony fanboys can admit this. Oh wait, they're Sony fanboys. They'll never say anything negative about Sony even though it's true. Bring on the disagrees, bitches!

Lyr1c2815d ago

[email protected]

1)Condemn Sony for reasons unannounced
2)Expect people to side with you
3)Complain at disagrees
4)????????
5)One bubble

BattleAxe2815d ago

Down with LG! I'm happy to say that I've never bought an LG product.

+ Show (2) more repliesLast reply 2815d ago
Misterhbk2816d ago

@frigiddarkness

where did you dig up that 65 percent?

SuperStrokey11232815d ago

how the hell is that an analogy at all? WTF are you talking about? Dont make things up that are clearly untrue

Baka-akaB2815d ago

"it's an analogy. "

Wich is an analogy for i made up stuff on the spot ? :p

mindedone2815d ago

people don't seem to understand what the word analogy means.

+ Show (1) more replyLast reply 2815d ago
zag2816d ago

I find it odd that LG are suing Sony on Blu-Ray when Sony created the Blu-Ray standard.

They currently run the Blu-ray Group.

I reckon this is a CD drive door not paid for type patent that hasn't been paid for.

gypsygib2815d ago (Edited 2815d ago )

I skimmed the statement of claim quickly. The document, from what I could understand, has something to do with how the drive reads data from the disc, something to do with reading both read-only Blu-rays and writable Blu-rays.

And it may only pertain to a specific newer model of PS3 or at least LG only mentioned one model.

ChronoJoe2815d ago

Considering the ongoing suits Sony has against LG... and vica versa... it'd probably result in some form of settlement where they drop eachothers charges.

This is just a counter suit really. Sony did the same thing to LGs phones

http://www.xbitlabs.com/new...

+ Show (2) more repliesLast reply 2815d ago
The Meerkat2816d ago (Edited 2816d ago )

Now we know why MS stuck with DVD9.

Shadow Flare2815d ago

...and made even less disc space available on them then xbox 1 discs

I dont know why they did that. Surely that cant be good for gamers. Share the secret with us meerkat, you seem to know

Passthemic2815d ago

My God man, must you always have something negative to say about MS? Obvious fanboy is obvious.

Drekken2815d ago

And here I thought it was because they had no vision of the future when in fact they knew the future and it involved being sued.

Thecraft19892815d ago (Edited 2815d ago )

They used dvd becuase they rushed the 360 out of the door hd dvd and blu ray where unfinished when 360 was in production.

gamingdroid2815d ago

The fact that Blu-Ray on the PS3 exist hasn't changed a darn thing for me in terms of enjoying games, so it has negligible if any impact on the Xbox 360.

+ Show (1) more replyLast reply 2815d ago
Dark_Overlord2816d ago

I don't see how 1 company can own the patents when it was a collaboration of companies who created the Blu-Ray standard, shouldn't they all equally part own the patents?

After reading the other article in the pending section LG wants to hope and pray they win, as Sony would be able to hold them accountable for any losses etc incurred.

Although I honestly don't see how LG can

Captain Tuttle2815d ago

LG is suing and they got a judge to agree to halt shipments. Steve Jobs said that the whole Blu-Ray licensing thing was a nightmare, seems he was right.

Dark_Overlord2815d ago

By the looks of things I'd have to agree, I'm sure this is gonna cause major problems in the Blu-Ray association (or whatever its called)

Stealth20k2816d ago (Edited 2816d ago )

lol and in the meanwhile sony is shipping to all of europe but holland...........

and just this month they have the number 1 console in every region...........

and sony will probably settle since they are suing each other . Will probably get resolved before the 10 day holland ban is up

RyuDrinksTheDew2816d ago

man, this is getting heated.

i hope the media is just blowing things out of proportion like it usually does.

Show all comments (54)
The story is too old to be commented.